The law in relation to leases can be complex with regards to the various obligations of Landlords and Tenants.

As a Landlord, leasing your property does not only mean agreeing on the rent and the length of the Lease.

The use of the property will decide what law will apply and what outgoings can be recovered from a Tenant.

If the property is used for retail purposes the Retail Leases Act 2003 applies and imposes many obligations upon Landlords with potentially significant consequences and penalties if the obligations are not met.

As soon as a Landlord enters into negotiations over a Lease, the Landlord must provide a copy of the proposed Lease and an Information Brochure about retail Leases.

A Disclosure Statement must be provided at least 7 days before the Lease is entered into. Failure to do so can lead to withholding of rent or the Lease being terminated.

In some cases a minimum 5 year term will apply even if initially both parties want the Lease to be for a shorter term.

Security deposits must be dealt with according to the Retail Leases Act and cannot simply be held by a Landlord.

Notices must be given by Landlords by particular dates regarding when options can be exercised by a Tenant failing which a Lease can go beyond the Lease term.

In Leases where there are no options remaining a Landlord must also give a Notice to the Tenant by a particular date as to whether the Tenant will be offered a new Lease and if so on what terms. Failure to do so permits the Tenant to continue in occupation beyond the Lease end date.

Issues also arise between Landlords and Tenants regarding the state of the premises both during and at the end of the Lease.

Galbally & O’Bryan can assist both Landlords or Tenants with Leases and their various obligations.



How to contact our Office


Melbourne Office
259 William Street 

T (03) 9200 2533 


Dandenong Office 
Shop 9/147-151 Foster Street 

T (03) 9769 2510 


Pakenham Office 
Shop 1, 15 John Street 

T (03) 5941 7990 


The information on this website is of a general nature only and may not reflect recent changes to certain areas of law. It should not be relied upon as a substitute for discussing your situation with a qualified legal practitioner. Contact us for more information.